Non-Conforming Program Overview

Non-Conforming

Program Overview

Wells Fargo Funding

September 2014

Information in this presentation is a summary and is not complete. Refer to the Wells Fargo Funding Seller Guide for additional guidelines. This

information is for use by mortgage professionals only and should not be distributed to or used by consumers or other third-parties. Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Funding is a division of Wells Fargo Bank, N.A. © 2012 Wells Fargo Bank, N.A. All Rights Reserved. NMLSR ID 399801 9/22/14

Non-Conforming

Overview

 Program Overview

 Pricing

 Client Responsibilities

 Submission using Direct Express

 Program/Product Parameters

 Documentation Requirements

 Appraisal Documentation

 Preferred Payment Plan

 Common Suspense Issues

 Important Seller Guide Sections and Reference Tools

 Contact Information

Non-Conforming

Program Overview

 Best Effort Registrations and Best Effort Locks

 Prior Approval underwriting only – Delegated Underwriting not allowed

 Full documentation

Non-Conforming

Pricing

 Review rate sheets regularly to ensure that you are:

 Aware of current price incentives (subject to change without

notice).

 Factoring in all applicable adjusters.

 Non-Conforming incentives may be available. Contact your regional

sales team for details.

 Your borrowers may be eligible for a .25 percent interest rate

reduction on their Wells Fargo Non-Conforming mortgage if they enroll

in the Preferred Payment Plan

_{. More details on this subject later}

Non-Conforming

Client Responsibilities

 Register and Lock loans with product type of ‘Non-Conforming’ and Best Effort

commitment.

 Ensure the loans follow the underwriting philosophy outlined in Seller Guide Section

800.01(a).

 Ensure the loans meet the standards outlined in the Seller Guide (particularly Section 825).

 Obtain all appraisal/collateral products from an authorized AMC (Clear Capital

_{, Rels}

Valuation, and ServiceLink) via the designated order source (refer to Seller Guide Section

800.10 and Exhibit 7).

 Share the final version of the appraisal with Wells Fargo Funding using the share

functionality in PartnerConnect or Rels Valuation.

 Submit a complete and full Credit Package for Prior Approval underwriting

- Use of the Loan Submission Summary/Form 1 is required.

- Use of the Non-Conforming Submission Checklist is highly recommended.

- Continue to include the final version of the appraisal.

 Deliver your Non-Conforming Closed Loan Packages using your standard process (imaging

or paper) and continue to include the final version of the appraisal.

 Direct Express is Wells Fargo’s proprietary feedback tool. This tool is utilized on all

Non Conforming loans and includes a Credco

_{or Equifax}

_{credit report pull.}

 Direct Express analyzes certain information from the Mortgage Loan application and

credit report for credit risk and eligibility requirements and provides feedback based

on that assessment.

 Wells Fargo does not require use of the Direct Express feedback tool to obtain

feedback; however, there are some key reasons why you might consider doing so.

 If you use the Direct Express feedback tool to pull credit, Wells Fargo will not

pull a separate credit report, eliminating the chance of a discrepancy in Loan

Score utilized to decision the loan.

 It provides you a preliminary look at potential issues or concerns with the loan.

Credco or Equifax prior to underwriting the file. This credit report will be used to determine pricing and the Loan Score used during the Wells Fargo Prior Approval underwriting process.

Non-Conforming

Non-Conforming

Submission using the Direct Express

SM

_{Feedback Tool (continued)}

Loan Summary

- Provides the details of the transaction, as submitted.

Feedback Messages



There will be messages to provide guidance about whether the loan meets the basic

criteria of the Wells Fargo Non-Conforming program.



The feedback certificate will also provide indications regarding documentation

requirements, market classification and risk factors.

Tips and Reminders



Always re-submit for feedback after changing any loan data.



When asked “Have you obtained DU

_{or LP Feedback on this loan?”, answer “No” in order}

to get Direct Express Feedback.



Print or image the Final Feedback Cert and deliver with your underwriting package.

Who to call with questions

 For technical questions regarding use of Direct Express, contact our Web Support team

at (866) 661-8025.

 For general questions regarding the Non-Conforming program, please call the Client

Relations team at (800) 328-5074, option 4.

Non-Conforming

Program/Product Parameters*

Underwriting Type Prior Approval

Note: Each department has dedicated individuals trained to handle Non-Conforming loans

Loan Purpose  Purchase

 Rate/term refinance  Cash-out refinance

Occupancy Primary residences and second homes Available Products  15-, 20-, 30-year fixed-rate

 5/1, 7/1, 10/1 LIBOR ARM Amortization Fully amortized only

(Interest-only payment feature is not allowed) Documentation Options Full Doc only

Loan Amounts Maximum $2 million

Note: Secondary financing may create combined loan amounts greater than $2,000,000.

Secondary financing Allowed

*Note: Guidelines noted in this presentation are subject to change. The Seller Guide and Newsflashes should be consulted for current Non-Conforming guidelines.

Non-Conforming

Program/Product Parameters (continued)

Loan Score Minimum Loan Score:

 700 for purchase and rate/term transactions with a fixed rate product  720 for all other transactions

Important note: Wells Fargo uses the loan score pulled from Direct ExpressSM_{; you’re}

encouraged to use that tool to prevent disparity between reports. Property Type  Single Family (attached and detached)

 Condo  PUD

 Co-op  Leasehold  Modular

Cooperatives  Loan amount < $650,000 – allowed in New York and New Jersey (Bergen and Hudson counties).

 Loan amount > $650,000 to $2,000,000 – allowed in New York City (Bronx, Brooklyn, Staten Island, Manhattan, Queens and counties of Nassau, Rockland, Suffolk, and Westchester).

 Co-op loans with subordinate financing are limited to properties located in New York Ratios  Front End ratio = 36%

 Maximum total debt to income ratio of:

 43% for primary, fixed rate, purchase and primary, fixed rate, rate/term refinance transactions

 40% for all other transactions

 Occupant Borrower’s Ratio with Non-Occupant Co-borrower = 43% LTV Maximum 80% LTV (refer to the Seller Guide for all LTV/CLTV restrictions)

CLTV Maximum 85% CLTV (refer to the Seller Guide for all LTV/CLTV restrictions)

Median Home Price When the aggregate loan amount exceeds ten (10) times the subject property’s county level median home price, the maximum allowable LTV/CLTV for primary residences is 70% and 65% for second homes.

Eligible Borrowers  U.S. citizens

 Permanent Resident Aliens (green card holders)  Non-Permanent Resident Aliens with a valid visa

Non-Conforming

Program/Product Parameters (continued)

Reserves

Retirement accounts Retirement funds may be used to meet up to 50% of the minimum reserve requirement.

 Tax deferred gross retirement assets must be reduced by 30% to account for tax consequences (less outstanding loan balances)  100% of the vested Roth IRA balances (less outstanding loans)  There must be an additional 10% reduction if an early withdrawal

penalty exists

Aggregate Financing  When aggregate financing for all properties owned by borrower exceeds $3 million

- 36 months PITI OR - Maximum 50% LTV

Note: Additional reserves may be required if the borrower has a negative equity position on a departure residence. Subject property combined Loan

amount Minimum Required reserves

Up to $2,000,000 12 mos. PITI $2,000,001 to $4,000,000 24 mos. PITI Greater than $4,000,000 36 mos. PITI

Non-Conforming

Documentation Requirements - Full Documentation

Salaried Employees  W-2 forms for the most recent two years.  Paystub covering the most recent 30 days.

 Verbal Verification on Wells Fargo’s Exhibit 3 and dated within 10 business days prior to the Note date.

Self-Employed

Borrowers  Individual tax returns and K-1’s for the last two years. Business tax returns for all businesses where the borrower owns ≥ 25% of the business.

 Self-employment income not used to qualify: The borrower must provide a copy of the first page of the most recent individual federal tax return to determine whether there was a business loss that negatively impacts the borrower’s ability to repay.

 For businesses where the income was used in the loan decision, a year-to-date profit and loss (P&L) statement and balance sheet are required if more than four months have lapsed since the last fiscal year end.

 Financial statements must be prepared by a certified public accountant, public accountant, or bookkeeper.

 The individual preparing the financial statements cannot be an immediate relative of the applicant.

 Balance sheets are required for sole proprietorships since balance sheet information is not included on Schedule C.

 Verbal Verification on Wells Fargo’s Exhibit 3 & dated within 30 days prior to the Note date. 4506T & Business

Tax Transcripts  IRS Form 4506-T must be included for each business tax return that was used in the Loan decision (Box 6 must include the tax return form number and box 6a and 6c must be checked).  When an extension for business tax returns has been filed for the most recent tax year the IRS

Form 7004 and the IRS Form 4506-T confirming “No Transcripts Available” are required. Assets Bank or brokerage statements for the most recent two consecutive months.

Credit  If a Credco® _{or Equifax credit report is provided by the Seller, Wells Fargo can re-access the}

report and use it for pricing and underwriting. Note: Credit report may be from CoreLogic®

Credco as they have partnered with Credco.

 If a Seller uses their own (non-Credco or non-Equifax) credit vendor, Wells Fargo will obtain one from Credco or Equifax prior to underwriting the file. This credit report will be used to determine pricing and the Loan Score for the Wells Fargo Prior Approval underwrite.

Non-Conforming

Documentation Requirements – Self-Employed Borrowers

Expanded the Definition of Self-Employed

 Considered self-employed when their income is derived from a business in which they maintain a majority owner interest or can otherwise exercise control over the business activities.

 Generally, a 25% or greater ownership interest in the business is considered a majority.

Self-Employment

Stability  Two or more years: Income from self-employment may be considered stable. At least one year but less than two years: May be considered stable if the following requirements are met:

 Borrower must have had at least two years of previous successful employment in the same occupation.

 Document reasonable probability of business success based on market feasibility, research, or studies and pro forma financial statements.

 Factors to consider:

 The borrower’s training and experience  The location and nature of the business

 The demand for that type of business in the area

Non-Conforming

Documentation Requirements – Self-Employed Borrowers –

Income Calculations

Method Types  Wells Fargo Cash Flow Analysis Method – considers distributions that the borrower is taking from the business

 Baseline Calculation Method – considers the net income from the business Wells Fargo Cash

Flow Analysis Method

 The cash flow analysis includes, but is not limited to, the assessment of the borrower’s ability to repay based on the ability to take withdrawals from (or put capital into) the business.

 Business net income typically does not represent “cash in pocket” but is used to support cash distributions. Business net income is used to support cash

distributions and may not always represent “cash in pocket.” Baseline

Calculation Method

 Financial Reform guidance refers to the new Qualified Mortgage requirements for the Baseline calculation.

 The Baseline calculation will continue to use the Adjusted Net Income approach for qualifying.

Process  Income will be calculated using both the cash flow analysis and Baseline calculation, with the lower of the two calculations being used to qualify the borrower.

 Lenders must provide documentation to evidence the income calculations were performed.

Additional

Information The cash flow and baseline calculations along with additional information regarding self-employed analysis can be found in  December 27, 2013 Newsflash (C13-080FR).

 Section 825.06 Income Analysis section of the Wells Fargo Funding Seller Guide.

To comply with the CFPB’s Qualified Mortgage self-employed income analysis, Wells Fargo Funding has updated our Non-Conforming Loan guidelines to include self-employed income analysis requirements.

Non-Conforming

Documentation Requirements – Full Documentation

Non-Conforming Initial Loan Submission Checklist

 The checklist is designed as a reference tool to highlight critical documentation requirements needed for sale to Wells Fargo to underwrite a Non-Conforming Loan.

 This checklist is optional, but will help you deliver a more complete loan package. Refer to Wells Fargo Funding Seller Guide for complete details.

This list is not all inclusive. Sellers must follow standard Agency guidelines if not addressed in

Section 825 or 820 of the Wells Fargo Funding Seller

Guide.

Non-Conforming

Appraisal Documentation, cont.

Total Loan Amount Provided by Wells Fargo

CLTV

Appraisal Documentation Required

Median Home Price Multiple < 4 times

Median Home Price

> 4 < 10 times Median Home Price

> 10 times Median Home Price

Less than or equal to $1,000,000

All One full appraisal One full appraisal One full appraisal

Greater than $1,000,000; Less than or equal to $1,500,000

< 70% One full appraisal

One full appraisal completed by a certified appraiser and a Residential Valuation Services (RVS) Desk Review2

One full appraisal completed by a certified appraiser1 _{and a Residential Valuation}

Services (RVS) Desk Review2

> 70%

< 80% One full appraisal

completed by a certified appraiser1_{and a} Residential Valuation Services (RVS) Desk Review2 Ineligible > 80% Ineligible Greater than $1,500,000; Less than or equal to $2,000,000

< 70% One full appraisal completed by certified _{appraiser1 and a Residential Valuation} Services (RVS) Interior Field Review2

> 70%

< 80% Ineligible > 80% Ineligible

1. Seller must notify the AMC that the appraisal must be completed by a certified appraiser and, upon receipt of the appraisal, must confirm the appraisal was completed by a certified appraiser.

2. RVS review products will be ordered by Wells Fargo Funding Prior Approval underwriting, after written verification is received from the Seller to accept the charges. LTV/CLTV will be based on the lower of the reviewed value or the sales price.

Notes:

 Refer to Exhibit 4 in the Seller Guide for median home prices.

 Inquire with Underwriting for LTV/CLTV exception availability where Ineligible is listed.

 RVS Reviews – when needed – will be ordered by the Wells Fargo underwriter after written verification is received from the Seller to accept the charges (RVS Review charge is $110 per review).

Non-Conforming

Appraisal Documentation, cont.

Where the Seller Guide

requires a…

AMC(s) authorized to

provide the valuation

product(s) are…

The valuation product(s)

from the AMC(s) must be

ordered through…

Appraisal

Clear Capital, Rels Valuation,

_{or ServiceLink}

PartnerConnect or Rels

_{Valuation’s website*}

Residential Valuation

Services (RVS) review

N/A

When required, RVS review

products will be ordered by

the Wells Fargo Funding

underwriter

Field review (Fannie Mae

Form 2000/2000A or Freddie

Mac Form 1032/1072)

Required for aged appraisals

in Market Class 3 or 4 (see

Seller Guide Section

825.11 for details).

Clear Capital

Clear Capital’s website

Rels Valuation

PartnerConnect or Rels

_{Valuation’s website}

ServiceLink

ServiceLink’s website

*Sellers must also share their final valuation products for Non-Conforming Loans with Wells Fargo Funding using the share functionality in PartnerConnect or inRels Valuation’s website (for orders placed directly with Rels Valuation).

Notes:

• Refer to Exhibit 7 for vendor contact information and additional information.

Non-Conforming

Preferred Payment Plan

SM

Overview

 Your borrowers may be eligible for a .25 percent interest rate reduction on their Wells Fargo

Non-Conforming mortgage if they enroll in the Preferred Payment Plan

_{with a Wells}

Fargo checking or savings account. When the property is located in one of 17 non-Wells

Fargo bank states, a financial institution other than Wells Fargo is acceptable .*

 The Preferred Payment Plan is a free, automatic way for borrowers to make their

mortgage payments with Wells Fargo.

 Borrowers can choose the option that meets their needs: weekly, every two weeks,

twice-a-month, or monthly.

 Borrowers who wish to open a Wells Fargo checking account may contact Wells Fargo at

(855) 856-0477.

*Note: Arkansas, Hawaii, Illinois, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Missouri,

Non-Conforming

Preferred Payment Plan

SM

_(continued)

Process

Clients will have two options to apply the interest rate discount:

Option 1: Lock the loan online at the non-reduced interest rate and then call Priceline at

1-800-262-5291 option 2 to apply the .25% interest rate reduction. Underwriting will

condition for the required documentation and upon approval will apply the interest rate

reduction to the final loan approval. This option is only available prior to the loan being

submitted to Underwriting.

Option 2: Lock the Loan online at the non-reduced interest rate and Underwriting will

condition to verify the borrower’s participation. Upon approval of the documentation, the

Underwriter will contact Priceline to reflect the .25% interest rate reduction.

Note: Both options require approval of the required documentation to receive .25% rate

reduction.

Note: If the loan is not locked and the credit package has been submitted to Wells Fargo, the

Non-Conforming

Preferred Payment Plan

SM

_(continued)

Documentation

 Upload the following with the Credit Package when the borrower wishes to enroll in the

Preferred Payment Plan (items below are required for both Wells Fargo and non-Wells

Fargo bank accounts):

 A completed Preferred Payment Plan Authorization Form (Exhibit 2), signed and

dated by the borrower (Note: do not fax the authorization as requested on the form),

and

 One of the following as additional documentation for the Wells Fargo automatic payment

withdrawal:

o

One month’s bank statement

o

Voided check imprinted with the borrower’s name and address

o

Voided deposit slip imprinted with the borrower’s name and address

o

Online bank printout signed by a banker

o

VOD

 Submit the following with the standard Closed Loan Package: executed Note and first

payment letter at the reduced interest rate.

Non-Conforming

Common Suspense Issues

Issue

Solution

Submitting a non-Credco or

non-Equifax credit report Use Direct Express

SM _{and/or pull a Credco or Equifax credit report.}

Appraisals from a company

other than an approved AMC Order all appraisals from one of the authorized AMCs: Clear Capital, Rels Valuation, or ServiceLink. Cover letter not included with

loan submission Include a cover letter with each submission that covers: The 5 C’s – Cash/Capital, Capacity, Credit, Character, and Collateral.  The 2 K’s – Know the borrower, and know and understand the

transaction.

Missing full documentation All Non-Conforming loans require full documentation. Refer to the Seller Guide for requirements.

Incorrectly completed

Preferred Payment Plan

Authorization Form

Verify all four sections of the Preferred Payment Plan Authorization Form (Exhibit 2) are completed with accurate information.

Undocumented large deposits Address the source of large deposits in the cover letter and document as needed.

Errors on Verbal VOEs  Be sure to use Wells Fargo’s Exhibit 3 (VVOE) and ensure it’s filled out completely with all necessary boxes checked.

 Must be dated before the Note date.

Closed Loan Underwriting Not allowed. Submit credit package for prior approval underwriting.

Non-Conforming

Important Seller Guide Sections and Reference Tools

Seller Guide Sections

 Section 200: Seller Eligibility

 Section 305: Events of Default; Remedies; Indemnification

 Section 400: Registrations and Pricing

 Section 505.08: Additional Documentation Required for Non-Conforming

Conventional Loans

 Section 825: Non-conforming Underwriting Guidelines

 Section 850: Qualifying Ratio Tables

 Section 950, 955, 973: Non-Conforming LTV Matrices

 Exhibit 3: Verbal Verification of Employment

 Exhibit 4: Value Based Median Home Price Classification List

 Exhibit 20: Market Classification (Restricted Markets)

Reference Tools

 Recent Newsflash communications

 Direct Express Sign-up and Approved Vendors

 Non-Conforming Initial Loan Submission Checklist

 Loan Submission Summary (Form 1)

Non-Conforming

Contact Information

Client Relations

If you have program or product questions, contact your regional Client Relations

Representative at 800-832-1298, Option 4.

Underwriting Scenario Questions

For underwriting support, please call the Scenario Helpline at (800) 328-5074,

option 5, option 3 or email

scenario.helpline@wellsfargo.com

.

Underwriting Key Contacts

Shari Clemons – Team Lead Underwriter (612) 312-5826

shari.clemons@wellsfargo.com

Jim Frazee – Lending Manager

(612) 312-5820

james.frazee@wellsfargo.com

Melissa Pappas – Lending Manager

(612) 312-4771

melissa.pappas@wellsfargo.com

Lisa Doyle – Lending Manager

(612) 312-5703

lisa.doyle@wellsfargo.com

Direct Express

_{and wellsfargofunding.com Questions}

For technical assistance, contact Web Support team at (866) 661-8025 or email

Non-Conforming

Top 5 tips

Tip #1 DOCUMENT IT

– Use our Loan Submission Summary and

Non-Conforming Initial Loan Submission Checklist for a smoother delivery

process and remember all Loans are full documentation.

Tip #2 REFERENCE IT

– Key sections of our Seller Guide, Newsflashes and

other resources are outlined in this deck for your reference. Download

the deck and reference material directly from LiveMeeting.

Tip #3 SUBMIT IT

– Remember to submit all files to Wells Fargo for

underwriting and include a Credco or Equifax credit report OR use our

Direct Express tool. Remember, we will consider exceptions to some

guidelines – be sure to highlight the exception request when

submitting the loan.

Tip #4 PRICE IT

– Remember to be sure to check all applicable adjusters,

any incentives and the rate improvement for the Preferred Payment

Plan (if applicable) are included when pricing your loan.

Tip #5 ASK IT

– If you have a question on any scenario, guideline, price or

process, ask us. This deck contains contact information for our

scenario helpline, underwriters and client relations. Also, you may

reach out to a member of your sales team with any question at any

time.

What is Direct ExpressSM_?

Direct ExpressSM _{is Wells Fargo’s proprietary feedback tool – which includes a credit report pull – utilized on all Non-Conforming products.}

Wells Fargo Funding does not require use of Direct Express to obtain feedback; however, there are some key reasons why you might consider doing so.

Benefits of using Direct Express

 Wells Fargo Funding requires a credit report from Credco or Equifax. By using Direct Express in your operations to pull credit, Wells Fargo will not pull a separate credit report, eliminating the chance of a discrepancy in Loan Score.

 Feedback results will help identify parameters of your loan that are outside of Wells Fargo guidelines and, it may provide a preliminary look at potential issues.

 Including Direct Express results with your file submission provides initial data to Wells Fargo which may shorten our registration time and potentially lead to a quicker review.

Getting setup

 Your company’s wellsfargofunding.com administrator has access to Direct Express functionality.

 Your administrator can provide access to others in your organization based on their business needs. They may also limit access to pricing information.

Required credit vendors

To use Direct Express, you must be set up with either CoreLogic® _{Credco or Equifax.}

Three basic steps for using Direct Express

1. Enter data using your company’s LOS, register or lock your loan with Wells Fargo, and upload to our website.

2. Access the loan under the pipeline menu on wellsfargofunding.com, re-access credit, double-check the data, and Get Feedback. 3. Update data as needed, and obtain new feedback.

For more information and a more in-depth overview, contact a member of your regional sales team.

Other key notes:

 Wells Fargo will obtain a credit report through Direct Express and use it to determine credit score for underwriting purposes, unless the Seller provides an Equifax or Credco credit report in the credit package.

 Along with the credit report, Direct Express provides only a preliminary indication of potential issues with a given loan. It does not provide an approval, nor a comprehensive list of stipulations.

 Regardless of the Direct Express feedback, all files will be manually underwritten by Wells Fargo.

 Direct Express does not provide relief to Representations and Warranties outlined in the Wells Fargo Funding Seller Guide.

Direct Express

To use Direct Express, you must be set up with one of the following two credit vendors.

Credit Vendor Account Status Take these steps to get set up

CoreLogic®

Credco

If you have an existing account

1. Call Credco Account Services Department at 866-448-2459. They answer the phone saying you have reached CoreLogic

2. Inform the representative that you want to sign up under the code WFCLIENTS.

3. Credco will provide you with a new Wells Fargo Funding affiliated account number to use with Direct Express.

If you do not have an existing

account

1. Go to the Credco website, complete the information request form, and click “SUBMIT to

receive your application.

2. Complete the compliance packet and submit it following the instructions in the packet.

Credco will contact you within 48 hours.

3. You will receive your new Wells Fargo Funding affiliated Credco account number within five days of completing the application process.

Equifax

If you have an existing account

1. Call Equifax Account Services Department at 888-279-9065.

2. Inform the representative that you want to sign up under the code WFCLIENTS. 3. Equifax will provide you with a new Wells Fargo Funding affiliated account number to

use with Direct Express. If you do not have

an existing account

1. Call the EMS Sales Support at 888-279-9065 or e-mail emssalessupport@equifax.com. Inform the representative that you want to sign up under the code WFCLIENTS. 2. Complete the compliance packet and e-mail to emssalessupport@equifax.com or fax to

800-832-0354.

3. You will receive your new Wells Fargo Funding affiliated Equifax account number within 14 days of completing the application process.

 Visit wellsfargofunding.com to update your company and user profiles for access to pull credit reports.

 Refer to the Wells Fargo Funding Seller Guide for more information regarding Direct Express guidelines.

Getting started

 Your company’s wellsfargofunding.com administrator:

 has been given access to the Direct Express tool functionality.

 has the ability to provide access to others in your organization based on business

needs and the ability to limit access to pricing information.

 If you need additional assistance, contact your Client Relations representative for more

information and a more in-depth overview.

To use the Direct Express feedback tool, you must be set up with one

of the following two credit vendors.

 CoreLogic

_Credco

 Equifax

Direct Express

Administrative set up on wellsfargofunding.com

User Preferences

Credit Vendor Information

 Add either Credco or Equifax (Wells Fargo-affiliated) account number and passwords

 Refer to Appendix A for how to sign up with a vendor

User Maintenance

Add individual user functionality for each user that will need to run Direct Express by

checking these two boxes in their profile.

Each user should also have access to:

 Pipeline

 1

_{Mortgage 1003 Upload}

 Register Loan and/or Lock Loan Group

Direct Express

High Level Best Practice Process Flow

Step 1

 Enter data on your company’s LOS

 Pull Credco or Equifax Credit (May do so at this point, or later in Step 3)  Upload 1003 to wellsfargofunding.com

 Register and/or Lock the loan (Loan must be at least registered or locked to obtain Direct Express feedback)

Step 2

 Select Loan Management from the top menu bar on wellsfargofunding.com  Select Operations Pipeline from the drop

down and then search for the loan for which you need Direct Express Feedback.

 Once found, click on the Loan Number.

 Once individual loan information is displayed, choose Edit Loan Data from the drop down box titled Select a Task to Perform.

Direct Express

Process Flow (continued)

Step 3

 Direct Express functionality is now accessible for your specific loan. The left tool bar selections generally follow the flow of your 1003.

 Select Get/View Credit to pull a credit report or re-access a credit report you’ve previously obtained.

 If you’re accessing credit that you pulled previously, you will need to enter the Credit Reference number from the existing credit report.

Direct Express

Process Flow (continued)

Step 4

 Reconcile/verify each section to ensure the information from your 1003 & credit report flowed correctly to Direct Express.

 If necessary, you may re-pull credit at this time. Once complete,

 Select Get Direct Express

Feedback

Step 5 (as needed)

 Update data as needed/Re-upload/Reconcile

 Select ‘Get Direct Express Feedback’

Direct Express